The effect of a change in the price of tea on the quantity of coffee demanded is
measured by the
Which of the following is a reason why the labor demand curve would shift rightward?
a. A decrease in the amount of capital equipment
b. An increase in educational attainment of the population
c. A shift to earlier retirement
d. An increase in population
e. An increase in the number of two-family households
Consider the following table on labor hours needed per unit of output:
Ignoring nonlabor inputs, which of the following statements is correct?
a. All of the following are correct.
b. The opportunity cost of a computer equals 1/4 unit of wine in Italy.
c. The opportunity cost of a computer equals 1/2 unit of wine in France.
d. Italy has a comparative advantage in computers.
e. Italy has a comparative advantage in wine.
Given the marginal cost and average total cost curves in Figure 11-6, a
monopolistically competitive firm in long-run equilibrium will produce
When a new good enters the market, the CPI
a. accounts for the change in its price immediately.
b. fails to account for the impact on living standards from the good’s existence.
c. never accounts for how the good changes in price.
d. accounts for the decline in the price but not for any increases.
e. accounts for the good only if sold in populous eastern states.
The intercept of a budget line measures the
Which point in Figure 2-3 is not possible for this society to produce?
Figure 2-3
If a bank’s total assets are $150 million and total liabilities are $110 million, the bank’s
net worth is
a. $15 million
b. $260 million
c. $40 million
d. -$40 million
e. $5 million
Which of the following would lead to a leftward shift in the supply curve for Czech
kroner?
a. A decrease in the dollar-krona exchange rate
b. An increase in the Czech Republic’s GDP relative to U.S. GDP
c. Expectation that the dollar price of the krona will rise
d. Stronger Czech interest in U.S. audio CDs
e. An increase in the U.S. interest rate relative to the Czech interest rate.
The primary macroeconomic cost of unemployment is
a. higher prices
b. lost leisure time
c. lost output
d. domestic violence
e. mental illness (e.g., depression)
If Mike buys a bond today for $400 that pays him $500 in one year, what is the implied
interest rate?
a. 80 percent.
b. 125 percent.
c. 20 percent.
d. 25 percent.
e. 22 percent.
The demand curve for shares of a stock is typically
Total fixed costs decrease as output expands.
If Egypt can produce 3 silver candlesticks or 120 small silver cups in an hour and
Turkey can produce 4 silver candlesticks or 160 small silver cups in an hour then
a. neither country would gain by trading
b. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only
produce silver cups.
c. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only
produce silver cups.
d. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only
produce candlesticks.
e. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only
produce candlesticks.